Research, identify, and describe appropriate insurance plans for a small busines

Question

Research, identify, and describe appropriate insurance plans for a small business. Option includes interviewing an insurance broker or searching the library/Internet for information. Complete your response by taking into account of the following:

1. Describe the types of policies and coverage needed for a typical small business.

2. Briefly list the appropriate limits, deductibles, exclusions, or premiums for one coverage identified in Q1.

3. Explain how insurance can mitigate the risks a small company faces, and discuss its limitations.

4. Describe the various risks a small company needs to mitigate.

5. Discuss how the policies can be obtained.

6. Present an insurance coverage plan for your small business. What coverage is needed, and how much will each plan cost? Respond in question-answer format. Reference shall be provided when outside resources are used in your work.

Explanation / Answer

1.Types of policies needed for typical small business are listed as below:

2. a) Limits :One coverage taking car insurance as an example , car insurance limit highest total amount your insurer will pay after an accident, often car insurance limits are described "per person" versus "Total "Consider that your policy's limit will also affect your premiums. The higher the limit, the higher premium you typically pay. You can work with your agent to choose the limits that offer the right protection to suit your needs.

b) Decutible: A deductible is the amount you'll pay out of pocket for a claim before your insurance coverage kicks in.

Limits, deductibles, and premiums are distinct, but interlinked, car insurance concepts with which you should be familiar in order to best meet your coverage needs.

3. Insurance helps to safeguard the company from unwanted disruptions for which the business insurance will be needed, Audit your physical locations and business processes to identify and address areas of vulnerability. Consider investing in a business owners' policy to help cover damage to company assets that results from fire, storms and other disasters. Carefully designed business practices can help mitigate risks, but it can be difficult to guard against unknown future events. General, product and professional liability policies offer coverage for businesses that are exposed to specific threats. These policies offer protection against third-party insurance claim

Map a strategy to help protect your company data both on-site and remotely. If it would be difficult for your business to recover from a data loss, consider investing in data compromise and identity recovery insurance. This can help to protect against loss or damage to computer equipment, data storage devices, electronic information, software and expenses related to data recovery.  

5.There are two kinds of insurance agents: those who represent only one insurance company and those who represent more than one. A “captive agent” represents only one company. An “independent agent” represents several companies.As important as anything else in finding the right agent is the level of professional confidence and personal comfort you feel with that person. One source of help is the Internet, which has opened up new avenues for purchasing small business insurance. Some insurance companies give customers the option of getting quotes online.

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